Stella-Jones signs Letter of Intent to acquire Thompson Industries
Written by jrood
Stella-Jones Inc. has signed a non-binding letter of intent to acquire Thompson Industries, Inc., a provider of treated wood crossties. The letter of intent contemplates a total purchase price of approximately $41.0 million. The transaction, if finalized, is expected to close in December 2011 and is subject to customary closing conditions, including entry into a definitive purchase agreement and satisfactory due diligence. Stella-Jones plans to finance the acquisition through existing credit facilities. "The acquisition of Thompson Industries would further enhance Stella-Jones' product and service offering to the North American railroad industry," said Brian McManus, president and chief executive officer of Stella-Jones. "Thompson enjoys solid business relationships and is well recognized for its high-quality operations."
